World Markets in Motion

US Industry Overview

Saturday, July 14, 2007

As many of you know, MVIS is one of my two largest holdings, encompassing nearly half of all portfolio assets. While this subjects me to increased risk and volatility as MVIS has a reputation of wild price movements, it also has rewarded since MVIS has printed a clear and undeniable uptrend since its lows from October 2006.

More recently MVIS created a new 52 week high at $5.90, before plummeting 22% to find support at the level of $4.60. This level of support lined up perfectly with the rising 50 DMA as well as our previous highs in April. As a uptrend progresses, it becomes increasingly important to find support at previous highs. This indicates an uptrend which, is in fact stable.

As evident in my chart, MVIS has done just that. Each sequential high has subsequently acted as support during each of MVIS's retracements. A perfect example of this was the $3.50 high made in November 2006 acting as support during MVIS's retracement from its January high of $4.08.

All this historical information is important, but what does it indicate regarding future price movement? While technical information can generate false signals, one can increase the odds of higher probabilities by systematically aligning multiple charting time frames.

Below the daily time frame, the next shorter duration would be the 60 minute spectrum. Interestingly, for MVIS this time frame prints a perfect Ascending Triangle, which is a bullish continuation pattern. The methodology behind this formation is rather simple to understand.

A stock will become range bound with firm resistance being placed at an establish ceiling. In the case of MVIS, resistance is firmly entrenching at $5.00, which also coincides with a psychological whole number barrier. Buyers continually push prices higher only to be met by selling at this level of resistance. The importance here is the series of higher lows. This indicates that, although the sellers are currently in control they are losing strength as the buyers establish support at higher and higher levels. Each sequential test of resistance increased the probability of it being broke. Thus the more tests, the greater the likelihood of a breakout. Ultimately, conformation is given when buyers push the equity through resistance with an increased level of participation(volume).

Conformation here would(will) come in the form of a higher volume break out above $5.00. If(when) this occurs, I believe MVIS can conceivably run to the level of $5.40

Cold fusion, which was once ridiculed, are now picking up more and more attention. Hundreds of scientists are researching it. It defies conventional logic but then the experimental result are none-deniable.

And who is to say cold fusion is not real? A company called D2Fusion is going to release commercial products pretty soon. An average family will be able to use a cold fusion device to heat the house during winter. But it MUST consume palladium to make such a device.

Believe it or not!

Auto makers put tens of billions of dollars into a thing called hydrogen fuel cell vehicles. They spend the money and they used a technology which MUST USE palladium. Are they joking when they inject tens of billions of dollars?

So believe it or not! It's a palladium super bull!

SWC is the ONLY USA palladium producer, and operates the world's highest grade PGM mines. Incredible amount of money can be made in SWC if this palladium bull materializes.